Canadian Dollar Breakdown Stalls
USDCAD–Retail forex traders remain net-short the US Dollar (ticker: USDOLLAR) against the Canadian Dollar for the first time since the pair last traded above parity. Yet USDCAD consolidation has meant that positioning is mostly unchanged since last week, and our sentiment-based bias is unclear.
Trade Implications – USDCAD: Our retail sentiment-based trading strategies recently closed their USDCAD-long positions and are unlikely to place new buy orders until we see a more substantive shift in crowd sentiment and price action.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.